Waitrose has confirmed it will open an online grocery depot in Coulsdon next year, creating up to 500 new jobs.
The multimillion-pound development is expected to begin trading in autumn 2014 at the industrial estate in Ullswater Crescent.
It is the firm's second online grocery depot and bosses say it is "designed to meet soaring demand for the service". Recruitment will start in summer 2014.
The news has been welcomed by community leaders and politicians. Charles King, chairman of the East Coulsdon Residents' Association, said: "I think it is fantastic. We will be encouraging them to employ as many local people as possible.
"It is a vote of confidence for the town."
The council and MP Richard Ottaway have urged Waitrose to come to town ever since it first expressed an interest in March last year. The company was said to be choosing between Croydon and Crawley at the time.
Coulsdon West councillor Ian Parker said the company's choice was "further evidence that Coulsdon and Croydon are particularly attractive places to invest in."
The depot is replacing outgoing occupants Ricoh and Iron Mountain, which last year employed about 100 people, meaning an overall gain of 400 jobs.
Croydon South MP Mr Ottaway said: 'This is terrific news and a major boost for our local jobs market."
The depot will join Waitrose's town centre supermarket, which has been operating in Brighton Road since 1971.
The news comes amid several ongoing developments in Coulsdon, including a new Volkswagen showroom and plans for hundreds of homes at Cane Hill.
Cllr Parker added: "We will continue to encourage developments which deliver the regeneration of Coulsdon – not just physically but also economically and socially."
